Package 1 (projected rentals 25% x $475)
Package 2 (Projected rentals x 50% $650
Package 3 (Projected rentals x 25% x$700)
Add-on Package (Projected rentals x 25% x $75)
Total revenue
Variable cost
E commerce fee (2.65% of total revenue
Add on Package cost of goods sold $36.99 x# of add on Package sold)
Total variable cost
Contribution
Fixed costs
Advertising	2400	3600	4800
Fuel ($1.06x13.2litres x 30km/100km x # of rentals)	252	537	739
Truck rental (year 2 and 3: $60 x 16 days	0	960	960
Employees wages (year 2 and 3: 24 hours/month x $15/hour x 4 months)	0	1440	1440
Manager's salary	10000	48000	48000
Vehicle insurance ($150/month)	1800	1800	1800
Business Insurance	2400	2400	2400
Bank fees $0/month	120	120	120
Rent $240/month	2880	2880	2880
Website hosting	250	250	250
NUANS search	40	0	0
Legal fees	2500	0	0
Depreciation, Pub ([# of pubs x $2000]/3 years)	1333	3333	5333
Depreciation, vehicle ([$36000 + $2500 -$3000]12 years)	2958	2958	2958
Depreciation, other rental equipment (# of sets x $2013] e 10 yrs	403	1007	1610
Total fixed cost	27336	69286	73290
Net income before interest and tax

Exhibit A1 above: Projected statement of BYP's earnings for the year ending April30 (low estimate)

4. Prepare three years of projected statements of earnings, and cash budgets for BYP. Analysis tables (A1 and A2) are attached, and the fixed cost section has been filled. You need to fill in other areas in the tables to complete the estimation.

Exhibit A2 Projected statement of BYP's earnings for the year ending April30 (high estimate)

Revenue

Package 1 (projected rentals 25% x $475)	xxxx	xxxx	xxxx
Package 2 (Projected rentals x 50% $650
Package 3 (Projected rentals x 25% x$700)
Add-on Package (Projected rentals x 25% x $75)
Total revenue
Variable cost
Contribution
E commerce fee (2.65% of total revenue
Add on Package cost of goods sold $36.99 x# of add on Package sold)
Total variable cost
Contribution
Fixed costs
Advertising	2400	3600	4800
Fuel ($1.06x13.2litres x 30km/100km x # of rentals)	252	537	739
Truck rental (year 2 and 3: $60 x 16 days	0	960	960
Employees wages (year 2 and 3: 24 hours/month x $15/hour x 4 months)	0	1440	1440
Manager's salary	10000	48000	48000
Vehicle insurance ($150/month)	1800	1800	1800
Business Insurance	2400	2400	2400
Bank fees $0/month	120	120	120
Rent $240/month	2880	2880	2880
Website hosting	250	250	250
NUANS search	40	0	0
Legal fees	2500	0	0
Depreciation, Pub ([# of pubs x $2000]/3 years)	1333	3333	5333
Depreciation, vehicle ([$36000 + $2500 -$3000]12 years)	2958	2958	2958
Depreciation, other rental equipment (# of sets x $2013] 10 yrs	403	1007	1610
Total fixed cost	27336	69286	73290
Net income before interest and tax

4. Prepare three years of projected statements of earnings, and cash budgets for BYP. Analysis tables (A1 and A2) are attached, and the fixed cost section has been filled. You need to fill in other areas in the tables to complete the estimation.

Exhibit 2: Backyard Pub Package contents and BYP cost to purchase

Package 1	Quantity Required	BYP's unit cost to purchase ($)
Inflatable pub	1	2000
Extension cord	1	25
Package 2
Inflatable pub	1	2000
Extension cord	2	25
Kegerator	1	500
Mini fridge	1	200
Chairs	12	22
Rectangular tables	2	90
Package 3
Inflatable pub	1	2000
Extension cord	2	25
Kegerator	1	500
Mini Fridge	1	200
Chairs	24	22
Rectangular table	2	90
Circular table	2	140
Bluetooth outdoor party speaker	1	275
Add on Convenience Package
Plastic cups	100	9.17
Ping pong balls	10	3.75
Napkins	1 package	2.88
Paper plates	50	8.00
Cutlery	1 Package (167 pieces)	13.19

Exhibit 3: monthly sales projections for BYP (units)

	Year 1 low	Year 1 high	Year 2 low	Year 2 high	year 3 low	Year 3 high
May	4	4	8	8	8	8
June	12	20	24	40	36	60
July	12	20	24	40	36	60
August	12	20	24	40	36	60
September	12	20	24	40	36	60
October	4	4	8	8	8	8
November	0	0	0	0	0	0
December	0	0	0	0	0	0
January	0	0	0	0	0	0
February	0	0	0	0	0	0
March	0	0	8	8	8	8
April	4	4	8	8	8	8
Total	60	92	128	192	176	272